1
You visited us 1 times! Enjoying our articles? Unlock Full Access!
Question

# Sales Rs 1,00,000, Cost of Goods sold Rs 80,000, Closing stock, Rs 10,000, Operating expenses Rs 5,000, freight Inward Rs 1,000, Freight outward Rs 3,000. Determine the operating profit?

A
Rs. 15,000
Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses
B
Rs. 25,000
No worries! Weâ€˜ve got your back. Try BYJUâ€˜S free classes today!
C
Rs. 24,000
No worries! Weâ€˜ve got your back. Try BYJUâ€˜S free classes today!
D
None
No worries! Weâ€˜ve got your back. Try BYJUâ€˜S free classes today!
Open in App
Solution

## The correct option is A Rs. 15,000Operating Profit = Sales - (Cost of goods sold + operating expenses) = 1,00,000 - ( 80,000 + 5,000) = 15,000Notes:- 1) Freight inward is already included in cost of goods sold and hence will not be deducted from sales2) Freight outward is an indirect expense. It is selling expense hence will not be included in the above.

Suggest Corrections
0
Join BYJU'S Learning Program
Related Videos
Provisions and Reserves
ACCOUNTANCY
Watch in App
Join BYJU'S Learning Program